Required: 1. If the market interest rate is 8%, the bonds will issue at $600,000. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Q: On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the market 10%. The…

A: solution 1: Computation of bond price Table values are based on: n= 20     i= 5.00%…

Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…

Q: On January 1, 2021, for $18 million, BBCompany issued 10% bonds, dated January 1, 2021, with a face…

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Q: On January 1, 2022, the Meade Group issued $8,000,000 of 11% bonds, dated January 1. Interest is…

A: Compute issue price of bonds as follows: Result:

Q: Sweetwood Company issues $5,000,000, 10-year, 9% bonds at 96, with interest payable annually on…

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Q: On January 1, 2024, White Water issues $550,000 of 5% bonds, due in 15 years, with interest payable…

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Q: On October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…

A: Bonds are issued at a face value of $864,000.

Q: [The following information applies to the questions displayed below.] Hillside issues $4,000,000 of…

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Q: On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds…

A: Bonds are issued by the company to increase the funds of the company. When a company issues bonds,…

Q: On October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…

A: Interest accrued on dec 31, 2021 = face value x rate of interest x no. of months/12 = $864000 x 8% x…

Q: issued $630,000, 9%, 5-year bonds at face value.

A: Journal entries refers to the act of making transactions in the form of either economic or…

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

A:

Q: On January 1, 2020, Morgan Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at…

A: Bond's issued at more than face value are said to be bonds issued at premium.

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: On April 1, 2020 , Quicke Mart issued $1,000,000, 9% bonds at par plus accrued interest dated…

A: Bonds are a form of debt taken by the company. Company has to make regular interest payments on…

Q: Prepare the necessary journal entries in general journal form on the following. a. August 1, 2021,…

A: As per our protocol we provide solution to the first three sub-parts only but as you have asked…

Q: On January 1, 2020, Garner Hot Rods issued $2,000,000 of 6%, 10-year bonds. Interest is payable…

A: Compute coupon payment for six months period as shown below:

Q: On January 1, 2021, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable…

A: Solution;- Preparation of amortization schedules as follows:-

Q: On June 30, 2021, Moran Corporation issued $13.0 million of its 8% bonds for $11.7 million. The…

A: Lets understand basics. When bond is issued for less than its face value then it is known to be…

Q: On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value).…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Required: Assuming the market interest rate on the issue date is 9%, the bonds will issue at…

A: Date Particulars Debit Credit Jan 1, 2021 Cash Account                                 Dr. $370000…

Q: On June 30, 2020, Nash Company issued $3,730,000 face value of 14%, 20-year bonds at $4,291,220, a…

A: Premium on Bonds payable = Issue price of bonds - Face value of bonds = $4,291,220 - $3,730,000 = $

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $730,000. The bonds’ annual…

A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…

Q: market was 11, and the standard bonds pay interest semi-annually 1. Prepare an effective-interest…

A: The question is based on the concept of Financial Accounting.

Q: January 1, 2020, Cullumber Enterprises issued 9%, 20-year bonds with a face amount of $5,350,000 at…

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Q: Pharoah Inc. issues $4,500,000, 5-year, 14% bonds at 104, with interest payable annually on January…

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Q: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $410,000. Record…

A: Date Particulars Debit Credit Jan 1, 2021 Cash Account                           Dr. $410000…

Q: On January 1, 2021, Callahan Auto issued $900,000 of 9%, 10-year bonds. Interest is payable…

A: Semiannual Stated interest rate=Annual rate2=9%2=4.5%

Q: n January 1, 2018 ABC Corporation issued a five-year $1,000,000, 8%, at $1,250,000. Interest is…

A: Effective Annual Interest Rate- Effective Annual Interest Rate is also known as effective interest…

Q: On January 1, 2021, a company issued 10-year, $3,000,000, 6% bonds with semiannual interest…

A: a.

Q: On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of…

A: Prepare the amortization table for Ironman Steel\'s bonds:

Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…

A: Face value of bond = $ 1,900,000                             Issue price of bond = $ 1,641,812…

Q: On January 1, 2020, Cullumber Company issued $400,000, 10%, 10-year bonds at face value. Interest is…

A: Bonds- These are the debts of a company on which interest is payable after a fixed interval i.e.…

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

Q: n July 31, 2021, Sheridan Inc. issued $430,000 of 5-year, 4% bonds at 104. Interest is payable…

A: To begin, preserving detailed records of your transactions helps to organize the data in your…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Date (A) Interest payment(B) Interest expenses (C) Amortisation on bond discount(C-B=D) Debit…

Q: On January 1, 2019, Mullens Sales issues $10,000 in bonds for $9,400. The bonds are five-year bonds…

A: First, compute the discount on bonds payable as shown below: Discount on bonds payable = $10,000 -…

Q: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Ike issues $180,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually…

A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…

Q: Using effective interest method, what amount of the bond discount should be amortized for the six…

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Q: *Please complete parts E and F***** On May 1, 2022, Cucumber Corporation issued $860,000, 12%,…

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Q: What would be the required journal entry on the date of issuance if a company issues $100,000…

A: Premium on bonds payable = Issue price of Bonds - Face value of Bonds = $103,769 - $100,000 = $3,769

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A:

Q: On January 1, 2021, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

Q: On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable…

A: CALCULATION OF INTEREST AMOUNTS :   ON 30 JUNE , 2021 : = $360,000 X 7% X 1/2  =$12,600   ON 31 DEC…

Q: On June 30, 2020, the market interest rate is 7% Moreau Enterprises issues $500,000 of 8% , 19-year…

A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

Q: On July 1, 2019, Pen Co. issued 4,000 of its 8%, P1,000 face value bonds payable for P3,504,000. The…

A: Introduction: Bonds discount: When bonds are issued at less than its face value called bonds…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds' annual…

A: Premium on bonds at the time of issuance = Issue price of bonds - Face value of bonds